Calculate financial ratios of the corporation

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Shareholder Wealth Maximization : TATA MOTORS & Nirma ratio analysis

Shareholder Wealth Maximization (ANY publicly Traded company)Locate one publicly traded corporation that you believe is maximizing shareholder wealth. Using financial ratio analysis, justify why you believe the corporation is maximizing shareholder wealth. Locate one publicly traded corporation that you believe is not maximizing shareholder wealth. What is the market price of the stock of this corporation? How does it compare with the intrinsic value of the corporation? Justify why you believe the corporation is not maximizing shareholder wealth. Calculate and analyze the following thirteen financial ratios of the corporation and compare them to the appropriate industry average:

Current ratio

Quick ratio

Cash ratio

Total debt ratio

Times interest earned ratio

Cash coverage ratio

Inventory turnover ratio

Receivables turnover ratio

Profit margin

Return on assets

Return on equity

Price-earnings ratio

Market-to-book ratio

Create a plan of action to get the corporation back to where the corporation is maximizing shareholder wealth. What do you anticipate will be the market price of the corporation's stock if the corporation successfully implements your plan of action?

Reference no: EM13747181

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